Montana Attorney General Tim Fox and 43 other states/territories have filed a lawsuit against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers, alleging a broad conspiracy to artificially inflate and manipulate prices, reduce competition and unreasonably restrain trade for more than 100 different generic drugs.
The lawsuit also names 15 individual senior executive defendants at the heart of the conspiracy who were responsible for sales, marketing, pricing, and operations. The drugs at issue account for billions of dollars of sales in the U.S. The alleged schemes increased prices affecting the health insurance market, taxpayer-funded healthcare programs such as Medicare and Medicaid, and individuals who must pay artificially inflated prices for their prescription drugs.
“Montanans have been hit hard by the often shockingly high prices of prescription drugs. The evidence in this case shows that some of the most well-known generic drug manufactures were involved in a widespread conspiracy to fix prices and divide up market share, with the direct result of harming consumers in need of life-sustaining medicine,” Attorney General Fox said. “The fact that generic drugs are supposed to be more affordable makes this conduct all the more troubling and harmful. We are committed to prosecuting and investigating this collusive conduct until these companies are held accountable for the harm they have caused.”
The complaint alleges that 20 generic drug manufacturers engaged in a broad, coordinated, and systematic campaign to conspire with each other to fix prices, allocate markets and rig bids for more than 100 different generic drugs. The drugs span all types and classes, including tablets, capsules, suspensions, creams, gels, ointments, statins, ace inhibitors, beta blockers, antibiotics, anti-depressants, contraceptives, and non-steroidal anti-inflammatories. They treat a range of diseases and conditions from basic infections to diabetes, cancer, epilepsy, multiple sclerosis, HIV, ADHD, and more. In some instances, the coordinated price increases were over 1,000 percent.
The complaint shows an interconnected web of industry executives. These competitors met with each other during industry dinners, “girls nights out,” lunches, cocktail parties, and golf outings. They communicated via frequent telephone calls, emails and text messages that sowed the seeds for their illegal agreements. Throughout the complaint, defendants use terms such as “fair share,” “playing nice in the sandbox,” and “responsible competitor” to describe how they unlawfully discouraged competition, raised prices, and enforced an ingrained culture of collusion.
The lawsuit seeks damages, civil penalties, and actions by the court to restore competition to the generic drug market.
View or download the lawsuit here: https://dojmt.gov/wp-content/uploads/GDMS-Complaint-5.10.19.pdf
Teva Pharmaceuticals USA, Inc.
Mylan Pharmaceuticals Inc.
Actavis Holdco US, Inc.
Actavis Pharma, Inc.
Amneal Pharmaceuticals, Inc.
Aurobindo Pharma U.S.A., Inc.
Breckenridge Pharmaceutical, Inc.
Dr. Reddy’s Laboratories, Inc.
Glenmark Pharmaceuticals Inc. USA
Lannett Company, Inc.
Lupin Pharmaceuticals, Inc.
Par Pharmaceutical Companies, Inc.
Taro Pharmaceuticals USA, Inc.
Upsher-Smith Laboratories, LLC
Wockhardt USA, LLC
Zydus Pharmaceuticals (USA), Inc.
- Ara Aprahamian, Vice President of Sales and Marketing at Taro Pharmaceuticals U.S.A, Inc.
- David Berthold, Vice President of Sales at Lupin Pharmaceuticals, Inc.
- James Brown, Vice President of Sales at Glenmark Pharmaceuticals, Inc.
- Maureen Cavanaugh, former Senior Vice President and Chief Commercial Officer, North America, for Teva
- Marc Falkin, former Vice President, Marketing, Pricing and Contracts at Actavis
- James Grauso, former Senior Vice President, Commercial Operations for Aurobindo from December 2011 through January 2014. Since February 2014, Grauso has been employed as the Executive Vice President, N.A. Commercial Operations at Glenmark
- Kevin Green, former Director of National Accounts at Teva from January 2006 through October 2013. Since November 2013, Green has worked at Zydus Pharmaceuticals (USA) Inc. as the Vice President of Sales
- Armando Kellum, former Vice President, Contracting and Business Analytics at Sandoz
- Jill Nailor, Senior Director of Sales and National Accounts at Greenstone
- James Nesta, Vice President of Sales at Mylan
- Kon Ostaficiuk, the President of Camber Pharmaceuticals, Inc.
- Nisha Patel, former Director of Strategic Customer Marketing and later, Director of National Accounts at Teva.
- David Rekenthaler, former Vice President, Sales US Generics at Teva
- Richard Rogerson, former Executive Director of Pricing and Business Analytics at Actavis
- Tracy Sullivan DiValerio, Director of National Accounts at Lannett
Drugs listed in the complaint as subject to price-fixing and market allocation agreements:
Amiloride HCL/HCTZ Tablets
Amoxicillin/Clavulanate Chewable Tablets
Amphetamine/Dextroamphetamine ER (aka Mixed Amphetamine Salts)
Azithromycin Oral Suspension
Bethanechol Chloride Tablets
Budesonide DR Capsules
Buspirone Hydrochloride Tablets
Carbamazepine Chewable Tablets
Cefdinir Oral Suspension
Clarithromycin ER Tablets
Clemastine Fumarate Tablets
Clonidine TTS Patch
Clotrimazole Topical Solution
Cyproheptadine HCL Tablets
Desmopressin Acetate Tablets
Desogestrel/Ethinyl Estradiol Tablets (Kariva)
Dextroamphetamine Sulfate ER
Diclofenac Potassium Tablets
Dicloxacillin Sodium Capsules
Diltiazem HCL Tablets
Disopyramide Phosphate Capsules
Doxazosin Mesylate Tablets
Drospirenone and ethinyl estradiol (Ocella)
Enalapril Maleate Tablets
Ethinyl estradiol and levonorgestrel (Portia and Jolessa)
Ethosuximide Oral Solution
Etodolac ER Tablets
Fluocinonide Emolient Cream
Fluoxetine HCL Tablets
Fluvastatin Sodium Capsules
Hydroxyzine Pamoate Capsules
Ketorolac Tromethamine Tablets
Labetalol HCL Tablets
Lamivudine/Zidovudine (generic Combivir)
Loperamide HCL Capsules
Mimvey (Estradiol/Noreth) Tablets
Moexipril HCL Tablets
Moexipril HCL/HCTZ Tablets
Niacin ER Tablets
Nitrofurantoin MAC Capsules
Norethindrone/ethinyl estradiol (Balziva)
Nortriptylline Hydrochloride Capsules
Omega-3-Acid Ethyl Esters
Oxybutynin Chloride Tablets
Penicillin VK Tablets
Pravastatin Sodium Tablets
Prazosin HCL Capsules
Propranolol HCL Tablets
Raloxifine HCL Tablets
Ranitidine HCL Tablets
Tamoxifen Citrate Tablets
Tolmetin Sodium Capsules
Topiramate Sprinkle Capsules
Warfarin Sodium Tablets